Four out of five 401(k) plan participants would be receptive to their plan providers marketing additional investment products to them, creating a potentially huge market for cross-selling, according to a Spectrem Group survey. However, only 14% of plan participants surveyed by Spectrem earlier this year use additional products from their providers. Of those who do not use any additional products, 70% are happy with the provider's service and 63% are satisfied with plan performance.
"We found the people who were most interested (in additional products) were the ones with larger balances and the younger participants," Kathy McBreen, managing director of Spectrem, said in an interview. "People have gained a level of trust with the providers and are satisfied with their performance and service." She pointed out that "most providers haven't reached out (to plan participants) yet. They should reach out aggressively."
The survey was based on telephone interviews with 401 plan participants in January and February.